The Importance of Competitive Promotion for Retailers
Hello subscribers,
Welcome to my latest newsletter, where today I'm focusing on the importance of competitive promotion for retailers.
As we approach the end of the year, brands must emphasize sales with promotions that attract customers, especially in light of ongoing inflation constraints.
According to a recent report by Numerator, more than a quarter of consumers would switch brands to get a better purchase deal.
Let's learn more about this report and what it means for retailers.
Numerator's report, updated on July 21, reveals exciting findings about consumer behavior regarding sales and promotions.
It shows that the June promotional volume declined 19% year over year, but sales price grew, accounting for 23% of all promotion offers.
Over a third of consumers browse store ads, and nearly a third frequently use coupons to save money.
Despite looking for discounts, though, consumers continue to spend overall.
In June, total U.S. commerce sales rose nearly 5% yearly, and non-store sales saw a 10% bump from the previous year.
The report argues that "brands and retailers will need to competitively promote for the remainder of the year as sentiment around finding promotions grows."
Back-to-school shopping, in particular, highlights the importance of deals.
According to a Deloitte report, kindergarten through 12th-grade families expects to spend $597 per child on school supplies, down 10% from last year.
With discounts in mind, 80% of back-to-school shoppers favor mass merchants, 60% look online, and 33% prefer off-price retailers and dollar stores.
As such, retailers must recognize the rising consumer allure for promotions and work to meet it.
Here are some key takeaways from the Numerator report:
Over a quarter (27%) of consumers said they would switch brands for a better purchase deal.
June promotional volume declined 19% year over year, but sales price grew, accounting for 23% of all promotion offers.
Over a third (34%) of consumers said they browse store ads; nearly a third (32%) said they frequently use coupons to save money.
Take a look at what the Deloitte report found regarding back-to-school shopping:
Families with children in kindergarten through 12th grade expect to spend $597 per child on school supplies, down 10% from last year.
With discounts in mind, 80% of back-to-school shoppers favor mass merchants, 60% look online, and 33% prefer off-price retailers and dollar stores.
To conclude
Overall, Numerator's report highlights the importance of competitive promotion for retailers.
Customers increasingly demand deals and discounts, and retailers must be up to meet those demands, especially as the year goes on.
With the back-to-school shopping season upon us, retailers must ensure they offer attractive promotions and deals that appeal to bargain-conscious families.
The future is bright for retailers who rise to the challenge and ensure that their competitive promotions meet the needs of their consumers.
Thank you for reading my newsletter, and I look forward to bringing you more exciting insights into the world of retail!